What started out as a banner year for buyout deals quickly soured when the credit crisis hit. A look at the biggest stories of the year, and what's in store for 2008.

By Grace Wong, CNNMoney.com staff writer

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A golden age

After driving merger activity to a record level in 2006, private equity firms look set to wield even more power on Wall Street at the start of 2007. Armed with cash and an endless flow of cheap debt, dealmakers set their sights on ever-bigger targets.